MSE News: Bank of Ireland to raise mortgage SVR

rich24

Interested in whether anyone has moved from BOI as part of their latest push. We are being offered a two year base rate + 1.5% tracker from First Direct with £1K cashback if we responded by end of Feb. Was doubtful about moving but obviously now glad we looked at given the SVR announcement.

Now just hoping the application goes through ok and the deal doesn't disappear.

Andz56

Heads they win, tails they win is very much how it feels

I don't know as much as some of you clearly do on this subject but can't help but feel that had the BoE rates gone up whilst I have been on this deal BOI wouldn't have come through and said they're being a bit greedy, they'll lower the SVR to negate this. So the BoE rate has gone down and stayed down, they're not making as much off the deal as they'd hoped so they change the rules in their favour!

The_J

Unfortunately the bank always has to win. If the bank loses, all the savers lose their money.

Banks do provide a great service, the real problem is that the banks got too big and because they are so vital to the economy and a stable society they had to be bailed out. It is ridiculous that some banks should have 20-30% of market share for mortgages/savings, how scary is that?!

If there were 200 banks with 0.5% market share each then you could spread your savings around and if one of them made a bad decision the taxpayer wouldn't bail them out, they would just go bust like any normal business. Savers would lose yes but that would force savers to research their bank and apply to the prudent ones.

kingstreet

Abandoning my usual impassive stance for a moment, I find it somewhat irritating that BoI has been offering some of its borrowers £1,000 incentives and waived early repayment penalties so they will go elsewhere.

Conversely, others face increases in rate by virtue of their transfer to TMW, or due to yesterday's announced increase in SVR. Their exit is not being sweetened by such an offer.

zebbedee

ManuelT wrote: »

Got a Bristol and West Mortgage 3 and a bit years ago fixed for 3 years, really stuggled towards the end of the fixed rate as everything has gone up except our wages so the SVR was a godsend. We can't remortgage as we are now self employed and our LTV is high probably close to 95% as property prices haven't moved in 3 years. So we are now looking to see if we can afford to keep the house which i'm hoping we will just be able to do but it's very tight.

That'll be the printing of money to keep your house price up then

But they should have moved down, if it were not for the printing of money

Wait for the bond market to turn its attention to sterling and the BoE raising rates to defend it, or it all goes pear shaped.

There are consequences for borrowing to much money to buy an overpriced asset in a bubble generated by historically cheap rates of interest and lax lending practices.:rotfl::rotfl::rotfl:

Andz56

It's a shame there are some people that seem to enjoy gloating about how much smarter they are when it comes to these sort of subjects. Well done! I'm pleased you're not in the position of many others.

My SVR is going up like many others, luckily I will be able to afford it but it stings, I don't have the option of moving my mortgage either. I think the main point people are trying to make is that it is a sudden hike and obviously it is not going to be well received but it could have maybe been at a more gradual pace.

neil324

Someone has to pay for those BOE lifetime trackers, spending needs to be kept up in a service economy.

Thrugelmir

kingstreet wrote: »

Abandoning my usual impassive stance for a moment, I find it somewhat irritating that BoI has been offering some of its borrowers £1,000 incentives and waived early repayment penalties so they will go elsewhere.

Conversely, others face increases in rate by virtue of their transfer to TMW, or due to yesterday's announced increase in SVR. Their exit is not being sweetened by such an offer.

The reason people didn't exit was that their borrowing rate was to good. There's been no secret as to what BOI are trying to achieve. As part of the IMF/EU bailout Irish banks had to shrink their balance sheets. In order to repay the money advanced.

egyptiangirl

Got my letter yesterday. Was expecting it. Up £160 a month. Luckily we can afford it so I feel for those of you that cannot.:(

englishdesi

Those of you who like me have been shafted by BOI. I had a chat with my solicitor this morning and he said the massive steep increase in the SVR goes against the 'fairness to consumers' principle of the FSA and advised me to lodge a complaint as arguably they are not treating their customers fairly by shoving up the rate so much to force them off their books.

I am going to lodge a complaint over the next few days and I suggest you all do the same